This website uses cookies to ensure you have the best experience.

# Microneconomics Essay

1707 words - 7 pages

1) a. If we do not have scarce resources, will we have a law of demand? Will we observe price rationing for goods?

The law of demand states the relationship between quantity demanded and price, showing that the lower the price, the higher the demand and vice versa. If we do not have scarce resources, there will still be a law of demand, because all humans are greedy. This means that we will always want more of what is there and demand always initially exceeds supply, but supply will then catch up, and over time will fall behind again, although this bottlenecking' is always temporary. This can be seen in fibre optic cables, as they catapulted the amount of information able to be ...view middle of the document...

2) a. Explain the difference between point elasticity of demand and arc elasticity of demand.

Point elasticity is the measure of responsiveness or sensitivity of quantity demanded to changes in price. However, arc elasticity is the measure of elasticity between two points on the demand curve. At the two points move closer together on the demand curve, it approaches point elasticity.

Point elasticity is calculated by the percentage change in quantity demanded divided by the percentage change in price, which is shown in formula by: ∆Q% P1
∆P% x Q1

Arc elasticity is calculated the same as point elasticity, although instead of the percentage change, it is calculated by the actual difference between the points. This is shown in formula by: Q2-Q1 P1+P2
P2-P1 x Q2+Q1
This formula is used when there is the change in Price and the Quantity, which allows arc elasticity to be more accurate than point elasticity.

b. Construct on the same graph two straight-line demand curves with the same intercept on the vertical axis, with one curve flatter than the other. Can you make a general statement about which one is the more elastic curve? If so, what is it?

This demand curve shows two straight lines. Line A is steeper and represents a less elastic curve while Line B is flatter and represents a more elastic curve. Point elasticity is the measure of responsiveness or sensitivity of quantity demanded to changes in price. If the elasticity is higher (more than 1), it means that there will be a larger response in demand with price, which is illustrated by curve B. One reason for lower elasticity is brand loyalty, with consumers sticking to one brand all the time. A reason for higher elasticity is the number of substitute products, because as soon as one product reduces its price, it will gain more sales than its substitutes.

3) It has been argued that in order to fight drug abuse sensibly, policy makers must understand the demand for drugs

a. Would you expect that the price elasticity of demand for illegal drugs to be greater than, or less than one?

The price elasticity of illegal drugs is less than one, which is inelastic. This is because drug addicts are will to pay anything to get their hit that they crave. If the person is craving the drug very badly, they will be willing to pay a lot of money, as they don't care f or substitutes and need the drug as soon as possible. Even if the price increases, the addicts still need the drug.

b. Given your answer to a, what happens to total expenditure on illegal drugs when their price increases? What do you think would happen to the amount of drug related crime?

Because drug addicts need the drugs, they are going to pay for the drugs regardless of the price, which means that total expenditure of the users will increase. This could result in the users having to leave more essential expenses to pay for drugs, as the drug opportunity cost far outweighs other...

## Other Papers Like Microneconomics

### Jail Responsibilities Essay

589 words - 3 pages Jail Responsibilities Monique Priorello September 23, 2012 One of the main responsibilities of a jail is to give the officers the correct “Police Correspondence” courses. This is because these courses give the officers the effective basic training that they need to do things such as; Writing of Memoranda, Police Reports, and Civilian Letters. What needs to be done first is make sure that there are NO errors. This means in

### Mgt330 Essay

638 words - 3 pages Starbucks Nefertiti Wright Sangita Patel October 15, 2012 STARBUCKS 2 STARBUCKS - 1 - [no notes on this page]I. Job description a. Baristas II. Job specifications a. Duties III. Form of departmentalization STARBUCKS 3 Starbucks Starbucks have been named in the 100 best companies to work for. Starbucks has many job opportunities for people, which require the right job specifications. The employees create uplifting experience

### Fight Club

917 words - 4 pages Fight Club is a story of the narrator’s struggle to gain control over his life. He is in search for an identity in the form of manhood. His masculinity is so repressed because of the absence of a father figure in his life. Because of this he creates Tyler, his alternate personality. Tyler is nothing like anyone the narrator has met, he is self assured and completely free. The narrators alternate personality Tyler Durden is the ultimate alpha-male

### The Powers Of The Health And Safety Representative

254 words - 2 pages The Powers of the Health and Safety Representative A health and safety representative has the power to: Identify Workplace Hazards The health and safety representative has the power to identify workplace hazards. This power is usually exercised by conducting workplace inspections. Obtain Information from the Employer The health and safety representative is entitled to the same information available to a joint committee member. Under the Act

### Lesson Plan

6476 words - 26 pages QWERTYUIOP by Vivien Alcock Table of Contents Introduction About Short Stories The Writer Synopsis Elements Activities Beyond The Text Assessment Answer Key Glossary Panel of Writers [pic] SHORT STORY Welcome to the World of Literature and to Short Stories! We hope you will enjoy working with this guidebook, which has been specially designed to help you prepare your students enjoy the Literature

### Management

1227 words - 5 pages Coca-Cola Global Business and Marketing Strategy Introduction As domestic markets mature, it is becoming more and more fashionable for organisations to seek growth through opportunities in foreign countries. Faster communication, new technologies and improved transport links are making international markets more accessible and businesses pursuing a global position can experience an upsurge in brand awareness and cost effectiveness. Global

### Facing Poverty With A Rich Girl's Habit

783 words - 4 pages Facing poverty with a rich girl’s habit Adele Strader Professor Chryst English Composition October 22, 2012 Facing poverty with a rich girl’s habit was written by Suki Kim and published in the New York Times on November 21, 2004. The most important point that Suki want to make was that (1) what we have in life can be taken away in an instant (2) do not go bankrupt in South Korea (3) that a person must adapt and endure

### 3-4-50 Paper

572 words - 3 pages -4-50 paperLack of exercise is a key contributor to disease and death among many people in the United States, regardless of age. It is a well-known fact that exercise results in a healthier lifestyle. Along with tobacco use and poor nutrition, lack of exercise is one of the main issues that people have which leads to high blood pressure, obesity, and other serious health problems. According to a study by UCSD School of Medicine and SDSU

### Capitalism

836 words - 4 pages Miguel Beatrice Capitalism is an economic system in which private individuals and business firms carry out production and exchange of goods and services through complex transactions involved in prices and markets. By extension called capitalist higher social class of this economic system ("bourgeoisie"), or to the common form would the individual interests of capital owners in both companies, shareholders and patterns, also called capitalism

### Sociology

1177 words - 5 pages Homelessness in America Homelessness in America is a social problem that we are faced with on a daily basis. Despite the vast number of research done by Americans on homelessness, little is still known about the effect that it has on our society. The overall image that emerges from the effects of homeless people

### Mental Health Community Service Essay

509 words - 3 pages Ladesca Smith Nursing 162 Community Volunteer Service Assignment Why you chose this agency? I chose this Sharing God’s Love, because I was interested in what kind of services they provide. I also wanted to know if there was any help out there for the people in need with mental illnesses. I also had lots of my kid’s old clothing that I needed to get rid of, so I donated it to them. Describe the population the agency serves. The

## Related Essays

### Lafarge S.A Essay

2924 words - 12 pages NAME: IHEKANANDU KINGSLEY N. COURSE: MGMT 292 / F12 N01 TITLE: INDIVIDUAL CASE STUDY (LAFARGE S.A.) SUBMITTED: October 5, 2012 TABLE OF CONTENTS 2. INTRODUCTION 3 3. DESCRIPTION OF CASE 4 4. VALUES 4 4.1. Types of values 4 5. TEAMWORK 7 6. MOTIVATION 8 7. CREATIVITY 9 7.1. Components of creativity 9 8. CONCLUSION 12 9. BIBLIOGRAPHY 13 INTRODUCTION This report aims to provide an in-depth analysis of initiatives pursued by Lafarge as

### Finance Essay

665 words - 3 pages Financial statements are the most common tool used for making business decisions. They consist of the balance sheet, income statement and statement of cash flows. The analysis tools used affect all aspects of a company not just a few. A systematic review of the resources a company used to achieve its mission is cost control. Cash flow should be kept at necessary levels for operations is one of the major benefits of cost control. It is a very

### Analysis Of Operation Blue Star And Its Effects On The Gandhi Dynasty

934 words - 4 pages The period of time including and following Operation Blue star is considered a dark time in India and black spot in Indian history. It is a time Indian would rather forget, yet still to this day debate about. Was Indihar Gandhi correct in instating operation Blue Star, inflicting damage to the Golden temple, and being responsible for the killing of anywhere from 492 (official reports) to 1500 (estimates run as high as) civilians, which lead to an

### Regretful Decisions Essay

930 words - 4 pages Regretful Decisions There are many individuals in a child’s life that helps mold them into a well-rounded adult. In most cases, this guidance comes from the child’s parents or other older, but in Sonny’s case, this guidance was expected from his older brother. In the short narrative, Sonny’s Blues, Sonny’s life was adversely affected by the decisions that his older brother made. The decisions that his brother made include leaving Sonny to stay